Garamendi responds to cliff deal, new Congress

A last-minute decision by the federal government saved the United States from falling off the "fiscal cliff" in the new year. It's unclear, however, exactly how the legislation, passed in the House of Representatives with a 257 to 167 vote, will effect local governments.

Rep. John Garamendi, D-Walnut Grove, who was one of the 172 Democrats who voted in favor of the compromise, was pleased that not only was a fiscal cliff prevented, but it averted tax increases on the middle- and working-class families.

"I voted for an acceptable compromise that preserves the middle-class tax cuts, maintains the Earned Income and Child tax credits, extends assistance for people struggling to find work, and asks millionaires and billionaires to contribute a little more to responsibly reduce our deficit," he said in a prepared statement. "The compromise also extends the farm bill for one year and preserves the wind production tax credit, vitally important policies for farmers and wind producers in my district."

Also saved in the tax deal is a provision that extends the wind power production tax credit. The credit, which gives a tax break of 2.2 cents for every kilowatt-hour of energy produced by wind, was set to expire at the end 2012. Congress extended it for one more year. Previously, the PTC applied only to wind projects that were fully built and producing electricity. Now, it goes to any wind farm that is "under construction" by the end of 2013. The one-year extension is seen as critical to make the wind industry cost-competitive with solar and natural gas.

Garamendi said the cliff deal isn't perfect "but by preserving tax rebates for the people who need them without harming Medicare or Social Security, it met my criteria for support." He added that he hopes the vote "presages future opportunities for Republicans and Democrats in Congress to come together for the good of our great nation."

The 113th Congress was sworn in Thursday, the day after President Barack Obama signed legislation averting the fiscal cliff. Garamendi was officially sworn in as the representative for the 3rd District, which includes Yolo, Colusa, Glenn, Lake, Sacramento, Solano, Sutter and Yuba counties.

"It is a great honor to represent Northern California in the United States Congress," said Garamendi. "My title is 'Representative' and that's exactly what I will be. I am here to listen and to lend my voice in service of the people of the 3rd District.

"Our region contributes mightily to the well being of our country, playing a vital role in national security, educational achievement, clean energy, food production, and much more. I'll work every day to give us the representation we need and deserve."